i have 5 credit cards with a total credit limit of about $15000.00 and i owe a total of about $600 all together...will closing my two most recent cards really hurt my score or not? or should i just cut up the cards and not use them? would it hurt my score to have just two dormant cards that are never being used?
2007-07-01 12:51:42 · 10 answers · asked by little_m_red 1 in Business & Finance ➔ Credit
No, closing your credit cards will not affect your credit rating, providing that they are paid in full prior to closing the account. And you will be saving on account charges as well. The only thing that could affect your rating would be a default on the credit card debt.
Its far better to close the accounts than to have dormant cards, on which charges may still apply, for having the line of credit open.
2007-07-01 12:58:15 · answer #1 · answered by Barb Outhere 7 · 2⤊ 1⤋
YES it will hurt your credit if you close an account. The good news here is that you don't owe very much, and do have a lot of avaliable credit limit. Essentially you could cut up the cards, but a dormant account will affect you just as bad as a closed account. When you close an account it takes away all the credit history you had on that account. Example, if you've had the account for 3 years, and never faltered on payments, if you close the account it takes away those 36 months of good payment. Best advice would be to keep them all open, use them one every month or two to keep them active (buy gas, then pay it off at the end of each month) and don't open any new credit cards.
2007-07-01 14:05:19 · answer #2 · answered by Anonymous · 0⤊ 1⤋
With 4 credit cards and a relocation, you don't need to maintain the other two (store specific cards). I suggest you cancel them so that you are not exposed to misuse by someone else and then a debt or detriment to the credit you've built. By requesting they be closed, instead of the creditor canceling them, your credit will not be impacted negatively. Responsible use of the four remaining credit cards you have will help to maintain and further build your overall credit. Try not to exceed charges over 70% of the limit and always make your payments on time. I hope your relocation is the start of great things for you. Good Luck!
2016-05-20 22:47:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your credit score could be affected by closing a credit card if
The card still has a balance.
It still has available credit when your other cards don't.
It was the first card you ever opened (though this won't matter for about 10 years)
You don't have any other credit cards
2014-07-27 20:27:57 · answer #4 · answered by Anonymous · 0⤊ 1⤋
You are better off not closing the accounts. Simply stop using the cards. Having them on your record shows that you are considered worthy of the credit. In addition to showing that you have the credit available, the cards may come in handy some day, for example if you lose the credit card you are using.
You can maintain a good credit rating by paying your credit card bills in full each month. You will also avoid any interest charges. Credit cards are a great convenience, but using them for maintaining debt is one of the worst financial decisions you can make.
2007-07-01 12:57:29 · answer #5 · answered by Anonymous · 1⤊ 1⤋
If you aren't using your credit cards it shouldn't hurt the credit. Only the active ones and the amounts on them should count. Try a free credit check and see what happens, if they say too high, then close the unused cards and try again. Also paying off the cards will help more then anything.
2007-07-01 12:56:40 · answer #6 · answered by Lorne's Tribe 2 · 1⤊ 0⤋
The two most important things in a credit score by far are
1. payment history
2. balances
If you don't have late pays or big balances, you're nickle and diming yourself with worry. If you don't want them, close them.
2007-07-01 14:04:09 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Cards that are cut up and never canceled, are on your credit report as being active. If you do not want them, cancel them. If A company sees that you have 5 cards, they see that as 5 reasons to go into debt. If you do not need them and do not want them cancel them out. It will not hurt your credit. 600.00 will not hurt it either
2007-07-01 12:55:24 · answer #8 · answered by bashfullyours1973 2 · 2⤊ 1⤋
yes...i was in the same position and was like..ho hum ill close a few...and my credit score dropped by a lot of points...keep them both for 6 months at least...use them once in a while then close one...wait about 2-3 months then close the other. any dramatic changes in your credit effects you...like closing a bunch or starting a bunch. closing them is a red flag like you cant afford them or something
2007-07-01 12:55:37 · answer #9 · answered by Anonymous · 1⤊ 1⤋
pay a bit of interest , then cut em up and pay em,
keep one maybe
I'm kinda thinking along those lines too, its more serious for me though
2007-07-01 12:55:23 · answer #10 · answered by Anonymous · 0⤊ 0⤋